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New iPhone 16 unveiled in Russia as retailers skirt Apple's export ban
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New iPhone 16 unveiled in Russia as retailers skirt Apple's export ban
Sep 22, 2024 4:37 PM

MOSCOW, Sept 19 (Reuters) - Russian retailers have

launched pre-sales of Apple's ( AAPL ) latest iPhone,

circumventing the company's export ban to Russia and giving

consumers the chance to pre-order devices hundreds of dollars

more expensive than in the United States.

Russia's leading electronics retailer M.Video-Eldorado

and mobile network operator MTS both claimed

on Thursday to be the first in Russia to unveil Apple's ( AAPL ) new

iPhone 16.

M.Video said phone deliveries would begin from next week.

MTS said it expected physical sales to begin very soon.

Apple ( AAPL ) paused all its product sales in Russia in March 2022

and halted services like ApplePay in response to Moscow's

invasion of Ukraine while Western-imposed sanctions sought to

curb technology exports to Russia.

Apple ( AAPL ) did not immediately respond to a request for comment

outside U.S. business hours.

Russians will have to fork out several hundred dollars more

than U.S. consumers for the iPhone 16.

Foreign brands that halted exports to Russia now take

circuitous routes to reach consumers, typically through

countries that have not imposed sanctions on Russia, such as

Turkey, Kazakhstan, China, India and the United Arab Emirates.

Reuters could not determine which route into the country the

new iPhones would be taking.

The parallel, or grey, imports scheme, endorsed by the

Russian government for brands that exited Russia since the

invasion, keeps the goods of companies that sought to leave

Russia available and shows the challenge firms face in

controlling supply chains when exiting a market.

M.Video said prices would start at 112,999 roubles ($1,225)

for the 128GB iPhone 16, over $400 more expensive than the U.S.

price of $799. The 1TB iPhone Pro Max was available for

pre-order in Russia for 249,999 roubles ($2,710), compared to

the U.S. price of $1,599.

MTS prices were marginally higher than M.Video's and said it

required a 25,000-rouble deposit for pre-orders.

Western goods and technology remain popular in Russia, a

potential vulnerability that Moscow wants to reduce with

domestic production.

The Kremlin has told officials to stop using iPhones, saying

that Western intelligence agencies have compromised them using

surveillance software. Apple ( AAPL ) has denied those claims.

($1 = 92.2500 roubles)

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